Pro stock traders frequently make sure to pay attention what expert market analysts are saying about a potential stock buy. Regarding LPL Financial Holdings Inc. [LPLA] right now, the most recent ratings from Wall St. analysts that we can see right now is regarding the quarter that’s slated to end in December. On average, stock market experts give LPLA an Outperform rating. Its stock price has been found in the range of 24.50 to 76.45. This is compared to its latest closing price of $66.05.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for LPL Financial Holdings Inc. [LPLA] is sitting at 2.20. This is compared to 1 month ago, when its average rating was 2.22.

For the quarter ending in Sep-18 LPL Financial Holdings Inc. [LPLA] generated $1.33 billion in sales. That’s 2.14% higher than the average estimate of $1.3 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Thu 31 Jan (In 17 Days).

Fundamental Analysis of LPL Financial Holdings Inc. [LPLA]

Now let’s turn to look at profitability: with a current Operating Margin for LPL Financial Holdings Inc. [LPLA] sitting at +9.04 and its Gross Margin at +33.47, this company’s Net Margin is now 7.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 11.80, and its Return on Invested Capital has reached 9.30%. Its Return on Equity is 26.75, and its Return on Assets is 4.63. These metrics all suggest that LPL Financial Holdings Inc. is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, LPL Financial Holdings Inc. [LPLA] has generated a Total Debt to Total Equity ratio of 258.29. Similarly, its Total Debt to Total Capital is 72.09, while its Total Debt to Total Assets stands at 45.44. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 256.75, and its Long-Term Debt to Total Capital is 71.66. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 12.20 and its Total Debt to EBITDA Value is 4.04. The Enterprise Value to Sales for this firm is now 1.25, and its Total Debt to Enterprise Value stands at 0.41. LPL Financial Holdings Inc. [LPLA] has a Price to Book Ratio of 5.32, a Price to Cash Flow Ratio of 11.48 and P/E Ratio of 15.74. These metrics all suggest that LPL Financial Holdings Inc. is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, LPL Financial Holdings Inc. [LPLA] earns $1,146,169 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.53 and its Total Asset Turnover is 0.83.

Performance Indicators

Let’s now turn our attention to trading performance: LPL Financial Holdings Inc. [LPLA] has 86.84M shares outstanding, amounting to a total market cap of $5.73B. Its stock price has been found in the range of 52.03 to 73.28. At its current price, it has moved by -10.00% from its 52-week high, and it has moved 26.75% from its 52-week low.

This stock’s Beta value is currently 1.54, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 63.70. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is LPL Financial Holdings Inc. [LPLA] a Reliable Buy?

Shares of LPL Financial Holdings Inc. [LPLA], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.